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The Increasing of the Reliability of Delivery Chain as a Means of Decreasing Logistic Costs

Student: Latysheva Tatiana

Supervisor: Andrey Aleksandrovich Bochkarev

Faculty: St.Petersburg School of Economics and Management

Educational Programme: Applied Economics and Mathematical Methods (Master)

Final Grade: 8

Year of Graduation: 2017

Logistic costs today play a very important role in the establishment of all companies because they provide work out of kinks of the business processes, that lets companies meet the commitments in time. Increasing of the reliability results in decreasing in costs that are connected with deficit of goods, delivery breaks, not in time shipment or loading, etc. Having analyzed methods of estimating the reliability, we concluded that the most relevant is increasing the reliability of the supply logistics because it is the process where logistic costs are the biggest. For increasing the reliability the task of choosing suppliers and the optimal level of supplying under the changeable conditions. Solving the task, the goods with a high share and big variation were chosen. Thus, it is relevant to apply the stochastic model for determining the optimal level of supplying in the forecast period. Having applied the model, we managed to account logistic costs in the forecast period, which turned out less than in the previous period and the reliability increased at the same time due to the fact, that the costs connected with deficit of goods decreased.

Full text (added May 17, 2017)

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